Rockland Legislature changes $712M 2019 budget pending Day vetoes

Rockland County Executive Ed Day talks about the 2019 budget of $709 million that would raise 2.9 percent in county property taxes, an estimated $37.70 per taxpayer during a press conference in New City Oct. 1, 2018.
Carucha L. Meuse, cmeuse@lohud.com

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The Rockland Board of Elections is in the County Office Building on New Hempstead Road in New City.(Photo: File photo/The Journal News)Buy Photo

The Rockland Legislature's Democratic majority adopted a revised 2019 budget, eliminating a transfer tax proposed by the county executive, increasing projected sales tax revenues and adding several million dollars for unsettled union contracts.

Republican County Executive Ed Day, serving his second, four-year term, criticized the changes, calling the financial maneuvers a "return to the sins of the past" that led to "deficits and double-digit tax increases."

Day, once a county legislator, can veto changes approved by the Legislature in a 10-7 vote during a Tuesday night meeting in the county office building in New City.

Day's veto deadline is Dec. 12 or the legislative changes stick.

The Legislature would need 12 votes to override any Day veto by Dec. 20.

"The amended budget passed by the majority members of the Rockland County Legislature is a return to the days of speculative revenue, over-estimating sales tax revenue and a refusal to modernize county government," Day said in a statement.

The Legislature's 10 Democrats adopted the revised budget, estimated at $712 million, an increase from Day's spending plan of $709 million, while maintaining Day's average property tax increase of 2.9 percent, or about $37.70 a year.

The governing body's six Republicans opposed the changes, with a seventh legislator not affiliated with either party joining the GOP lawmakers.

Day's proposed budget included contracted salary increases, a $5 million increase in health benefits, $3 million for increased debt service for infrastructure rebuilding, a recurring $13.1 million payment toward the bond that covered the county's massive debt, and dealt with $1.7 million in rising costs from the state.

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The Rockland County health complex in Pomona.(Photo: Staff TJN)

The Legislature revisions — and Day's response — included:

Eliminating Day's proposed $200 transfer tax on real estate transactions for deed verifications. The majority argued the verification work is done by private title companies. Day said the tax maps need to reflect the deed information as accurately as possible to ensure the owner is properly assessed. Day said the lack of a deed verification law could create a $1.2 million deficit in the budget. He said the county clerk and five town assessors supported the program.

Adding $3.5 million into a reserve fund of $5 million toward employee contract settlements. The plan calls for the money to be drawn from the forfeiture of the down payment by the would-be buyer of Summit Park Nursing Home once court appeals end. The Legislature’s outside fiscal consultant opined that the funds could be used for budget purposes. Day had allocated $1.5 million toward the unsettled contracts, acknowledging the amount wouldn't be enough for all open union contracts. He once stated more money could come through the sale of the closed Sain Building in New City, a proposition now dormant and opposed by a majority of legislators. The stalled sale remains a matter of contention between Day, his fellow Republicans, especially from Clarkstown, and Democrats, mostly from Ramapo. Day said the $3.5 million doesn't exist and is purely speculative, sabotaging negotiations. "It also is poor fiscal policy and against" the state comptroller's "recommendation to use one-shot revenues for a recurring expense like a raise." Day had once proposed budgeting $4.5 million from the sale of the Sain building, but the sale never occurred.

Slashing four of six new positions sought by Day, but leaving two of the jobs sought by the County Executive’s Office — a chief of staff and an assistant to the county executive. The salary cost would be $190,640. The executive and legislative branches historically have not meddled in each other’s offices and personnel needs. Day said his proposed budget eliminated 28 vacant positions. The 2019 budget pays for 1,708 employees, up from 1,694 in 2018.

Delineating funding for 50 nonprofit organizations. Day offered a bulk sum of $3.1 million to be divvied up, as he questioned the fiscal handling of at least one group. Legislators argued allocating specific sums allows each organization to properly budget for 2019. Day argued the comptroller recommended against providing a specific amount and this is a political attempt to score points. The Legislature did overrule Day and $90,000 to United Hospice of Rockland for services performed in 2018. The Day administration had questioned the agency's handling of its finances.

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Inara Johnson works on a project during summer camp at the Martin Luther King Multi-Purpose Center in Spring Valley July 20, 2016. The center is among the agencies that would be receiving funding under Rockland County's 2019 budget.(Photo: Peter Carr/The Journal News)

Day referenced the days when the county government dug itself a $138 million hole during the nationwide economic recession.

Day said under his administration the county has improved its economic position with cost-savings and and other measures. The Legislature adopted a resolution with state approval to obtain a $96 million deficit reduction bond. About $48 million remains to be paid off at $13.5 million annually until 2024, Day has said.

In the end, the Legislature majority estimated its changes didn't alter Day's 2.9 percent property tax increase to the county government.

The increase remains within the state cap for the county. The budget's local programs - policing, prosecuting, contract agencies and share of medicaid and other state programs - are supported by property taxes and sales tax revenues.